Bank of America Announces Full Redemption of Its Series DD Preferred Stock and Related Depositary Shares

Rhea-AI Summary

Bank of America (NYSE: BAC) will redeem all outstanding Series DD Fixed-to-Floating Rate Non-Cumulative Preferred Stock and the corresponding depositary shares on March 10, 2026.

Depositary shares will be redeemed at $1,000 per share. A separate declared dividend of $31.50 per depositary share for the period Sept 10, 2025–Mar 10, 2026 will be paid on March 10, 2026 to holders of record on Feb 15, 2026. Dividends cease to accrue on the Redemption Date; redemptions will be processed through DTC and Computershare as agent.

Positive

• Redemption set for March 10, 2026 at $1,000 per depositary share
• Declared cash dividend of $31.50 per depositary share for Sep 10, 2025–Mar 10, 2026
• Dividend payment to holders of record on Feb 15, 2026
• Redemption processing through DTC and Computershare redemption agent

Negative

• Redemption price of $1,000 excludes accrued and unpaid dividends
• Dividends on redeemed depositary shares cease to accrue on March 10, 2026

News Market Reaction – BAC

+2.89%

1 alert

+2.89% News Effect

On the day this news was published, BAC gained 2.89%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Redemption price: $1,000 per depositary share Liquidation preference: $25,000 per preferred share Dividend amount: $31.50 per depositary share +5 more

8 metrics

Redemption price $1,000 per depositary share Series DD preferred stock depositary share redemption on <b>March 10, 2026</b>

Liquidation preference $25,000 per preferred share Series DD Fixed-to-Floating Rate Non-Cumulative Preferred Stock

Dividend amount $31.50 per depositary share Semi-annual dividend from Sept 10, 2025 to Mar 10, 2026

Redemption date March 10, 2026 Preferred Stock and related depositary shares redemption date

Clients served Nearly 70 million Individual, small and middle-market business clients in the U.S.

Retail financial centers Approximately 3,600 U.S. retail financial centers

ATMs Approximately 15,000 ATM network in the United States

Digital users Approximately 59 million Verified digital banking users

Market Reality Check

Price: $49.81 Vol: Volume 51,678,877 is 1.25...

normal vol

$49.81 Last Close

Volume Volume 51,678,877 is 1.25x the 20-day average of 41,439,496 shares. normal

Technical Price $55.38 is trading above the 200-day MA $49.35, reflecting a pre-news uptrend.

Peers on Argus

Ahead of this preferred redemption announcement, BAC was up 1.71%. Large U.S. ba...

Ahead of this preferred redemption announcement, BAC was up 1.71%. Large U.S. bank peers were mixed: JPM and WFC were positive, while HSBC, RY, and C traded slightly lower, indicating stock-specific rather than broad sector momentum.

Common Catalyst Citigroup also announced a full redemption of a preferred stock series today, suggesting a shared focus on capital structure actions among some large banks.

Historical Context

5 past events · Latest: Jan 20 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 20	Employee equity awards	Neutral	-1.6%	Announced <b>$1 billion</b> Sharing Success equity awards to non-executive employees.
Jan 16	Preferred dividends	Neutral	-1.6%	Declared regular cash dividends across multiple preferred stock series, including Series DD.
Jan 14	Q4 2025 earnings	Neutral	-3.8%	Reported fourth quarter 2025 financial results and hosted investor conference call.
Jan 9	Senior notes redemption	Neutral	-1.2%	Planned redemption of <b>$3,000,000,000</b> 5.080% Fixed/Floating Rate Senior Notes due 2027.
Jan 9	Community grant	Neutral	-0.6%	Announced <b>$1 million</b> grant to rebuild YMCA facility destroyed in wildfires.

Pattern Detected

Recent BAC headlines, including capital management actions, employee awards, and community grants, have generally been followed by modest negative price moves, regardless of the ostensibly neutral-to-positive tone of the news.

Recent Company History

Over the past month, Bank of America has reported Q4 2025 results (Jan 14), executed debt redemption plans (Jan 9), and highlighted employee and community initiatives, such as a $1 billion Sharing Success equity award and a $1 million YMCA grant. Despite these largely neutral or positive developments, 24-hour price reactions after each event ranged from about -0.59% to -3.78%, suggesting a tendency for shares to soften following news flow.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-10-01

Bank of America has an active S-3 shelf registration dated 2025-10-01, allowing issuance of various securities, including debt, warrants, preferred stock, depositary shares and common stock. The shelf outlines payment, tax, and benchmark conventions and can support ongoing structured note and callable debt offerings, as reflected in multiple 424B2 prospectus supplements filed in February 2026.

Market Pulse Summary

This announcement details the full redemption of Bank of America’s Series DD preferred stock and rel...

Analysis

This announcement details the full redemption of Bank of America’s Series DD preferred stock and related depositary shares at $1,000 per depositary share on March 10, 2026, with a separate semi-annual dividend of $31.50 per share for the current period. Investors may watch how this fits into BAC’s broader pattern of callable debt and preferred redemptions, as well as continued issuance of structured and callable notes under its active shelf.

Key Terms

fixed-to-floating rate non-cumulative preferred stock, cusip, liquidation preference, depositary shares, +2 more

6 terms

fixed-to-floating rate non-cumulative preferred stock financial

"it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series DD"

A fixed-to-floating rate non-cumulative preferred stock is a type of preferred share that pays a set dividend for an initial period, then switches to a variable dividend tied to market interest rates; if the issuer skips a dividend after the switch or during either period, unpaid amounts are not owed or accumulated. Investors care because it combines early income predictability with later interest-rate sensitivity, and carries priority over common shares but greater risk of lost income than cumulative issues.

cusip financial

"Series DD (CUSIP No. 060505EV2), liquidation preference $25,000 per share"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

liquidation preference financial

"liquidation preference $25,000 per share (the "Preferred Stock")"

A liquidation preference is a rule that determines who gets paid first and how much they receive when a company is sold, goes bankrupt, or distributes its assets. It gives certain investors a priority claim—often returning their original investment plus any agreed multiple—before other owners receive money, which shapes how much common shareholders and founders ultimately get; think of it as a front-of-the-line pass that affects payout order and investor returns.

depositary shares financial

"and the corresponding depositary shares each representing a 1/25th interest"

Depositary shares are tradable certificates that represent a fractional piece of a larger security held by a third-party bank, like owning a slice of a single big pie instead of the whole pie. They let companies issue and investors buy smaller, more affordable portions of preferred stock or other instruments; holders usually receive proportional dividends and market pricing similar to ordinary shares, but may have limited voting rights and different liquidity or tax implications, which can affect income and resale value.

the depository trust company financial

"The Depositary Shares are held through The Depository Trust Company ("DTC")"

The Depository Trust Company is a large organization that safely manages and keeps electronic records of ownership for stocks, bonds, and other securities. It acts like a digital warehouse, making it easier and faster for investors to buy, sell, and transfer investments without needing physical paper certificates. This helps ensure transactions are secure, accurate, and completed smoothly.

redemption agent financial

"Payment to DTC for the Depositary Shares will be made by Computershare Inc. and Computershare Trust Company, N.A., collectively, as redemption agent."

A redemption agent is the third-party firm or bank that handles the paperwork and payments when investors cash out certain securities or funds. Think of it as the trusted cashier and record-keeper who confirms you’re entitled to money, arranges the transfer, and ensures rules are followed; its efficiency and reliability affect how quickly and safely investors actually receive proceeds and reduce the risk of administrative delays or errors.

AI-generated analysis. Not financial advice.

CHARLOTTE, N.C., Feb. 5, 2026 /PRNewswire/ -- Bank of America Corporation announced today that it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series DD (CUSIP No. 060505EV2), liquidation preference $25,000 per share (the "Preferred Stock"), and the corresponding depositary shares each representing a 1/25^th interest in a share of the Preferred Stock (CUSIP No. 060505EU4) (the "Depositary Shares"). 

The Depositary Shares will be redeemed simultaneously with the Preferred Stock on the upcoming dividend payment date on March 10, 2026 (the "Redemption Date"), at a redemption price of $1,000 per depositary share. Declared dividends of $31.50 per depositary share in respect of the outstanding Depositary Shares for the full current semi-annual dividend period from, and including, September 10, 2025 to, but excluding, March 10, 2026 will be paid separately on March 10, 2026, to holders of record on February 15, 2026, in the customary manner. Accordingly, the redemption price of $1,000 per depositary share does not include any accrued and unpaid dividends. Dividends on the redeemed Depositary Shares will cease to accrue on the Redemption Date.

The Depositary Shares are held through The Depository Trust Company ("DTC") and will be redeemed in accordance with the applicable procedures of DTC.

Payment to DTC for the Depositary Shares will be made by Computershare Inc. and Computershare Trust Company, N.A., collectively, as redemption agent. The address for the redemption agent is as follows:

Computershare Trust Company, N.A.
Attn: Corporate Actions
150 Royall St.
Canton, MA 02021

This press release does not constitute a notice of redemption under the certificate of designation governing the Preferred Stock or the deposit agreement governing the Depositary Shares.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,600 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Forward-Looking Statements

Certain information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions difficult to predict or beyond our control. You should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed under Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, and in any of our subsequent Securities and Exchange Commission filings. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

Investors May Contact:

Lee McEntire, Bank of America
Phone:  1.980.388.6780
lee.mcentire@bofa.com

Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
jonathan.blum@bofa.com

Reporters May Contact:

Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
jocelyn.seidenfeld@bofa.com

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SOURCE Bank of America Corporation

FAQ

What is Bank of America (BAC) redeeming on March 10, 2026?

Bank of America will redeem all outstanding Series DD preferred stock and corresponding depositary shares on March 10, 2026. According to the company, depositary shares will be redeemed at $1,000 per share and processed through DTC and Computershare.

How much dividend will BAC pay to Series DD depositary shareholders for the current period?

Holders will receive a declared dividend of $31.50 per depositary share for Sep 10, 2025–Mar 10, 2026. According to the company, that dividend is payable separately on March 10, 2026 to holders of record on Feb 15, 2026.

Will the $1,000 redemption price include accrued dividends for BAC Series DD shares?

No. The $1,000 redemption price does not include accrued and unpaid dividends for the depositary shares. According to the company, accrued dividends are paid separately on the stated dividend payment date.

When do dividends stop accruing for Bank of America Series DD depositary shares?

Dividends on the redeemed depositary shares cease to accrue on the Redemption Date, March 10, 2026. According to the company, any declared dividend for the period up to that date will be paid separately on March 10, 2026.

How will BAC depositary share redemptions be processed and who is the agent?

Redemptions will be processed through The Depository Trust Company under applicable DTC procedures. According to the company, Computershare Inc. and Computershare Trust Company, N.A. will serve as the redemption agent for payments to DTC.